There's an interesting bit of analysis of chief exec pay in the FTSE100 over the past 5 years here (PDF). Its conclusions -
* Shareholders’ investment in their Chief Executive (CEO) is significant:
– 2008: Median Total Actual Pay is £8.9m, Upper Quartile is £13.3m*
* CEO compensation bears no relation to Total Shareholder Return performance
* Long Term Incentive Plans (LTIPs) are clearly driven overall by performance
* But, other elements of pay (salary, bonus) serve as a “filler” for under-performers – ensuring that those whose LTIPs are likely to fail, or partly fail to pay out, receive rewards in other ways
Hat-tip: Duncan
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